Tycoon Oei Hong Leong launched a cash offer to acquire IPC Corporation yesterday after pushing his stake in the mainboard-listed property firm to more than 30 per cent.
Mr Oei - ranked by Forbes as Singapore's 19th richest person - told the Singapore Exchange (SGX) that he has raised his holding in IPC to around 30.56 per cent yesterday, which has triggered his buyout bid.
He is offering 17 cents a share for all remaining stock of IPC, valuing the firm at around $145 million.
The offer price is at a 2.41 per cent premium over IPC's closing share price of 16.6 cents on Tuesday.
The closing date for acceptances will be set out in the offer document, which will be dispatched in 21 days.
Mr Oei's plan to take over IPC has come as no surprise to the market. Since 2012, the high-profile investor has been building up his stake in the firm, which has been investing in hotels and residential developments in Japan since 2009.
It also has projects in China and the United States.
Its full-year net profit rose 57.1 per cent to $28.6 million last year, due partly to gains from revaluation of investment properties in Japan.
The group announced on Monday that it is negotiating with a party for the sale of its remaining seven hotels in Japan for potentially $150 million.
IPC sold its two Sapporo Hotels for around $29.61 million last December.
The SGX announcement yesterday said that while Mr Oei will continue developing IPC's current business, "the offeror intends to undertake a review of the business of the group following the close of the offer with a view to identifying areas in which the strategic direction and operations of the group can be enhanced".
Trading of IPC shares was halted yesterday afternoon after prices were pushed up by Mr Oei's takeover to a full-year high of 17.2 cents.
The stock closed up 3.1 per cent, or 0.5 cent, at 16.6 cents on Tuesday.
This article was first published on April 2, 2015.
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